What: Walmart’s advertising business surged 37% globally in 2025, with digital and AI-driven strategies fueling profit.

Why it is important: The surge in advertising revenue demonstrates how ecommerce and AI adoption are reshaping competitive dynamics in retail.

Walmart’s advertising business experienced a remarkable 37% global increase in 2025, reaching $6.4 billion and marking a pivotal shift in the company’s profit structure. This growth is closely tied to Walmart’s strategic focus on ecommerce expansion and the integration of digital and AI-driven solutions, which have elevated advertising and membership income to comprise a significant portion of overall profit. Despite this progress, Walmart’s ad revenue remains a small fraction of Amazon’s, highlighting both the scale of opportunity and the competitive challenge in retail media. The company’s investments in technology, supply chain automation, and AI-powered shopper assistants have not only improved operational efficiency but also driven higher order values and enhanced customer engagement. As agentic commerce and AI adoption accelerate across the industry, Walmart’s ability to innovate and adapt its business model will be critical to capturing future growth and maintaining its competitive edge in a rapidly evolving retail landscape.

IADS Notes: In February 2026, Walmart’s $6.4 billion ad revenue milestone was confirmed, reflecting a 37% global increase and a growing share of profit. The same month, Financial Times reported Amazon overtaking Walmart in sales, with Amazon’s ad revenue at 8% of GMV versus Walmart’s 1%, highlighting the competitive gap. February 2025 saw Walmart’s technology investments drive an 82% share value surge and $681 billion in revenue, with advertising and ecommerce as key growth engines. Forbes in February 2025 documented the rapid adoption of AI shopping agents, with 38% of consumers using such tools, while McKinsey in November 2025 projected agentic commerce could add $1 trillion to US retail revenue by 2030, underscoring the urgency for retailers to adapt to AI-driven commerce.

Walmart’s ad revenue totaled $6.4 billion in 2025